US soyabean futures fell to a six-week low on Tuesday on improving South American crop prospects and uncertainty about export demand from China, analysts said. Corn rose on technical buying and expectations that commodity index funds will buy grain next week as they rebalance portfolios. Wheat was choppy, paring early advances.
As of 12:58 pm CST (1858 GMT), the benchmark Chicago Board of Trade March soyabean futures contract was down 7-3/4 cents at $9.96-1/4 per bushel after dipping to $9.95-3/4, its lowest level since November 18. CBOT March corn was up 3-1/2 cents at $3.55-1/2 a bushel and March wheat was unchanged at $4.08 a bushel.
Soyabeans declined for a fourth straight session as analysts grew more confident of crop prospects in South America and particularly Brazil, projected as the world's No 2 soyabean producer after the United States. "The market is feeling more secure about South American bean production, and therefore they don't need to buy US (soyabean) acres as much for 2017," said Mike Zuzolo, analyst with Global Commodity Analytics.
Others cited US President-elect Donald Trump naming Robert Lighthizer, a critic of China's trade practices, as a bearish market factor for soyabeans. CBOT corn firmed on technical buying and expectations that commodity index funds will buy corn as they make annual adjustments to their portfolios for 2017. The managers of both the S&P GSCI and the Bloomberg Commodity Index last autumn announced plans to raise the share of corn and wheat in their indexes for 2017, and the funds typically make those adjustments in January. Wheat turned lower in technical moves, retreating from early advances.
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